Unique workload needs. In recent years, this percentage has continued to increase. More than 50 percent of the executives surveyed rely heavily on financial metrics principally, cost and ROI to determine the path to success for their cloud initiatives. Get the latest insights in cloud computing trends and cloud migration statistics by downloading the Flexera 2022 State of the Cloud Report. This adoption has been trending for a reason, as there are many . Cloud computing has profoundly changed the way we live our lives and conduct business. The cloud computing market is projected to grow way bigger in just the next five years. While that could be true, new research from Synergy . Although growth declined to 18% in calendar Q3, this still works out to a 36% increase in the first nine months of 2020. Cloud providers can take several steps to support their continued growth. The report explores the thinking of 753 respondents from a survey conducted in late 2021 and highlights the year-over-year (YoY) changes to help identify trends. Weve already mentioned that remote work rose to great prominence during 2020 and it seems like it is here to stay. How to Access the Deep Web and the Dark Net, How to Securely Store Passwords in 2023: Best Secure Password Storage, How to Create a Strong Password in 2023: Secure Password Generator & 6 Tips for Strong Passwords, MP4 Repair: How to Fix Corrupted Video Files in 2019, Simple Cloud Computing Facts You Need to Know, cloud storage services with the best security and privacy, excellent article detailing cloud security measures, storage services with unlimited cloud storage. 2023. In just the first four months of 2020, the value of completed data center acquisitions, at US$7.5 billion in only 28 deals, was greater than in all of 2019.13, Although cloud is growing rapidly overall, it serves multiple industries, many of which have cut spending sharply. As one example, the next-generation AI GPU Tesla T4 from Nvidia doubled the energy efficiency for inference AI compared to its predecessor, Tesla P4.45, Moving some AI processing to the edge. IT Visibility, IT Asset Management, Cloud Management. This goes to show that non-cloud data centers are on their way out and will be superseded by cloud data centers in the near future.14. However, she said, 81 percent of customers reported the repatriation of workloads from public clouds to on-premises private cloud, hosted private cloud, or on-premises non-cloud infrastructures, a . Linux's strength comes from its open-source design and . A . You can only download this statistic as a Premium user. Thats the only way we can improve. Its time to revitalize, rebuild and reimagine the future. One thing is certain: to remain competitive and maximize the available advantages, organizations must make strategic decisions about cloud computing, cloud architecture, usage of public clouds, effective tooling, cloud migration and cost management. According to the report, 52% of those who moved workloads from the cloud back on premises said either . If you are interested in learning more about these terms, we invite you to read our cloud terminologies article, which explains how they function in greater detail. You can tell that an article is fact checked with the Facts checked by symbol, and you can also see whichCloudwards.netteam member personally verified the facts within the article. "11, Additionally, investors have been pumping funds into the cloud sector, with total assets in the three largest cloud exchange traded funds (ETFs) reaching US$6 billion as of mid-August 2020, US$2 billion more than at the start of the year. Cloud Computing Trends: Flexera 2022 State of the Cloud Report, Practical Guide for a Successful Cloud Journey, Cloud Migration and Modernization Datasheet. 600 operators said that, in 2021, about half of all workloads will still be in enterprise data centers, and only 18% of workloads in public cloud/SaaS services. Take control of cloud use with out-of-the-box and customized policies to automate cost governance, operations, security and compliance. As stated by the industry publication SiliconANGLE: Because the big cloud players are so large, they are exposed to industries that have been hard-hit by the pandemic. The respondentsglobal cloud decision makers and usersrevealed their experiences with cloud migration, cloud computing, and their insights about the public, private and multi-cloud market. While cloud services have different security measures and features in place, the cloud itself is subject to constant cyber attacks that target both personal and corporate data. We test each product thoroughly and give high marks to only the very best. For computational environments, a workload is an expression of an ongoing effort of an application AND what is being requested of it. The likely reason: COVID-19, lockdowns, and work from anywhere (WFA) have increased demand, and we predict that revenue growth will remain at or above 2019 levels (that is, greater than 30%) for 2021 through 2025 as companies move to cloud to save money, become more agile, and drive innovation. ", Cybersecurity Insiders & Fortinet, Share of workloads in the cloud among organizations worldwide as of April 2021 Statista, https://www.statista.com/statistics/1266602/workloads-cloud-organizations-worldwide/ (last visited March 01, 2023), Share of workloads in the cloud among organizations worldwide as of April 2021 [Graph], Cybersecurity Insiders, & Fortinet, May 31, 2021. By 2022, the adoption of cloud technologies by other countries will fall behind the US by several years. On top of these concerns, COVID-19 has created an unprecedented wake-up call. By 2025, there will be over 100 zettabytes of data stored in the cloud.13 To put this in perspective, a zettabyte is a billion terabytes (or a trillion gigabytes). With a hybrid cloud solution, you can, for example, only use public cloud resources when you really need them, saving you a lot of money in the meantime. Prediction 1: By 2025, 30 percent of SMBs will shift half of their core workloads to the cloud to drive business agility and future resilience. Thirty-seven percent of enterprises said their annual spend exceeded $12 million and 80 percent reported that cloud spend exceeds $1.2 million per year. The proliferation of cloud software, coupled with the disruption of 2020, has made the message loud and clear for organizations: digitize or die. In fact, just over half of businesses (52 percent) prefer cloud solutions that have their own native security tools.8, When we think of cyberattacks, we often picture hackers exploiting built-in cloud IT infrastructure weaknesses. This takes into account video streaming behemoth Netflix, established services like HBO and relative newcomers such as Disney+. In 2019, the remote desktop software market was worth $1.53 billion and it is estimated that it will reach $4.69 billion by 2027 at a CAGR of 15.1 percent. Balancing on-premises and cloud workloads On-Premises vs. With more than 25 years of experience, he has steered large-scale digital and enterprise transformations, helping to enable enhanced market competitiveness for some of the worlds most influential brands. Companies that have shifted their offerings to an XaaS model have already experienced considerable success with both consumers and investors, challenging conventional valuations and placing pressure on industry players that are retaining traditional business models such as perpetual licensing and long-term contracts.20. SMBs run fewer and smaller workloads, so it stands to reason their cloud bills would also be lower. . Because theCloudwards.netteam is committed to delivering accurate content, we implemented an additional fact-checking step to our editorial process. Cloud computing output rose by 600% between 2010 and 2018, while its energy use rose only 6%.36. Cloud Computing's Catch-22. Even though we understand what the cloud does, the way it works and how it is evolving is a far more complex subject. We strive to eventually have every article on the site fact checked. 2. Thanks to COVID-19 driving enterprises toward cloud, the cloud market will likely emerge from the pandemic stronger than ever. First, to paraphrase Spider-Man, With great growth comes great capital expenditures. Higher-than-expected growth is good news, but to keep up with it, cloud providers will likely need to spend more on capex. So do nine of the top ten public clouds. Its market value is estimated at more than $90 billion19, a massive increase over its 2019 valuation of approximately $20 billion. Together, we can help you imagine, deliver, and run your business, wherever youcompete, using the latest technologies like cloud and cognitive, from strategy development through implementation. The cloud is a vital online technology that is used all over the world. The first is obvious: if overall use of the cloud doubles, then, all other things being equal, energy use doubles as well. As the operating model changes, the organization will turn to a product-orientated operating model where the entire value stream of the business and IT will have to be aligned by products. Consequently, the cloud infrastructure of a private cloud (the physical servers that host the private cloud) is maintained by that organization. He has also served on the board of the Colorado Technology Association. Yet even as enterprises embrace the many benefits of the cloud, managing the cost of cloud computing is an ongoing challenge. As organizations move more workloads to the cloud, they can retire the technical debt associated with maintaining and operating traditional data centers. May 23, 2022. In recent years, this percentage has continued to increase. As a Premium user you get access to the detailed source references and background information about this statistic. In its Q4 2022 results, total revenue fell to $452 million, down 5 percent on a year earlier. Although these companies are not necessarily providing detailed quarterly numbers, their commentary has been in line with those that do release exact numbers. Otherwise, it's the same thing. These 26 cloud computing statistics are great indicators where the cloud service market is headed. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Basically, the only difference is who owns the infrastructure. When sizing the market for public cloud, it is therefore important to understand what percentage of total enterprise workloads are in the public cloud (vs. elsewhere). Of financial services companies currently using a majority cloud strategy in the United States, for example, only half (54%) of their workloads are fully deployed in the cloud. In fact, according to the survey, 27 percent of organizations already have moved, or plan to move, apps/workloads from the cloud back on-prem, a retrograde maneuver known as repatriation. In Malaysia, the first mainframe, the IBM System/360, was introduced in 1964. Beena Ammanath, Susanne Hupfer, and David Jarvis. Plus, all of your favorite online streaming content is hosted on cloud servers, whether its a Netflix series, your Spotify playlist or a YouTube channel. Since all you need is an internet connection, cloud computing is super convenient for both business and personal use. And not only are edge AI chips relatively efficient already, but they are progressing rapidly, with one company announcing that its current edge AI solution is 25 times more efficient than last years model.47. Technology is evolving rapidlyand it's important to stay on top of the latest trends and critical insights. The cloud. What was once a trendy, science fictionsounding buzzword has become an inescapable part of our everyday personal and professional lives. Would appreciate it if you can explain it , thanks! Michael also leads the GTM and cross-offering efforts within Consulting in North Region as Regional Consulting Leader. 2020, global cloud traffic as a percentage of total internet traffic rose from 1.26% to 1.83%, up by 45%. [2] 70% Migrating more workloads to the cloud 59% Optimizing cloud use to cut costs 50% Advancing a cloud. Because of this, 92 percent of organizations already have a multi-cloud strategy.4, Enterprises face many challenges, but three of the most prevalent issues include security (83 percent), managing cloud computing spending (82 percent) and governance (79 percent). The percentage of cloud-based application software expenditures will rise from 57.7% in 2022 to 65.9% in 2025. The hyperscalers still offer remarkably good value for ad-hoc cloud infrastructure needs where the workload is highly variable or high-growth. (LogicMonitor, 2020) Meanwhile, 20% of businesses spend over $12 million on public cloud annually. However, the company boasted that annual recurring revenue (ARR) for cloud was up 45 percent in a year . Cloud Workloads. Faced with lockdowns, social distancing and similar measures, a large portion of the workforce needed to move online. This question focused on percentage of existing workloads, rather than where the main workload was located or what would happen in the future (a more objective representation). Gen Zs and millennials are striving for balance and advocating for change. Only about 10 large public hyperscale cloud providers and chip companies break out their cloud revenues on a quarterly basis in detail. . The survey also posed to 600 medium to large organizations what percentage of infrastructure operations belonged to: On-premises legacy environments; Public cloud workloads; Private or hybrid cloud workloads Optimizing usage is a cost-control measure and migrating workloads can save money while driving agility. WORKLOADS IN THE CLOUD What percentage of your workloads are in the cloud today compared to how it will be in the next 12-18 months? Get full access to all features within our Business Solutions. [2] According to European organizations, migrating more workloads to the cloud is the most important cloud initiative. However, 53 percent of SMBs spend more than $1.2 millionup from 38 percent last year. Netflix used 451,000 megawatt hours to deliver video in 2019, and Netflix viewers consumed about 112 billion hours during the year. Chart. IT workload distribution globally 2019-2021, by cloud type; Hybrid cloud environment usage worldwide: workloads by type 2017; Prediction as to when 95 percent of workloads are cloud-based . As a result, we see pockets of spending deceleration even at these companies.14. Longer term, as growth returns to historical rates, it seems likely, based on the history of technology, that market concentration will increase again. This allowed AWS to evolve at a more leisurely pace and to develop more functionalities. Workloads can support more than one process. What was once considered science fiction could soon become reality. Gartner surveys indicate that when cloud migrations are complete, an average of 30 percent of the digital infrastructure remains on-premises. Traditional, non-cloud-enabled datacenter deployments were next, with 22% penetration . Their advantages are better control and privacy, as well as increased flexibility.28. Cloud tools have . As multiple enterprises shifted rapidly to cloud during the pandemic, some saw costs balloon. DTTL and each of its member firms are legally separate and independent entities. As an example, Siemens is allowing employees to WFA, where feasible and reasonable, two to three days per week going forward; this policy applies to more than 140,000 employees at about 125 locations in 43 countries.16 Continuing or growing WFA arrangements such as this could strengthen ongoing demand for cloud. 80 percent of the effort to migrate to the cloud comes from 20 percent of the workloads being moved. Compared to the same period in 2020, this was a 35 percent year-on-year growth and a five percent quarter-on-quarter rise. Organizations are increasingly utilizing PaaS services from cloud providers. More than 70% of companies have now migrated at least some workloads into the public cloud, according to Gartner research. These servers host data that you can access via an internet connection. Global Technology, Media & Telecom Industry Leader, Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (DTTL), its network of member firms, and their related entities. This type of software includes remote desktop tools such as TeamViewer and Chrome Remote Desktop, which allow you to connect to a remote computer and work on it via a remote internet connection.27. Moving from CPUs to specialized AI chips improves AI power efficiency, but AI chip technology is not standing still either. This list of cloud computing statistics will give you an idea of just how significant it really is. 70% of companies using the cloud plan to increase their budgets in the future. Postpandemic, all of these factors will likely be even more challenging. Revenues for 2020 are likely to be over US$125 billion, increasing tomore than US$160 billion in 2021.7 And although percentage growth was down three points in the first nine months of 2020 compared to all of 2019, it is worth noting that in absolute dollar terms, the total hyperscale market (not just the five largest) grew more in 2020 than in 2019. While an earlier study by Spiceworks Ziff Davis had found that cloud use accounted for 40 percent of workloads, that percentage was expected to increase to 50 percent of workloads by 2023 . KPIs for measuring cloud adoption success. As organizations move more workloads to the cloud, they can retire the technical debt . Check out the latest blogs related to Cloud Management below. We hope that you have found these cloud computing stats and trends both interesting and fun. This statistic offers a forecast of cloud workloads as a percentage of total data center workloads, from 2011 to 2021. As always, thank you for reading. He earned his masters and bachelors degrees from Texas A&M University, and completed executive education programs at Babson College and Arizona State Universitys Thunderbird School of Global Management. Clearly, hybrid cloud is the new normal. However, many other companies sell chips, storage, and connectivity solutions into the cloud space. This includes cloud storage providers like Sync.com and pCloud, as well as large platforms like Microsoft Azure. And the siloed and disjointed approach of yesterday will no longer be effective in todays fast-evolving digital world. Show publisher information As companies move more applications to the cloud, the cloud market is booming. Get the Deloitte Insights app, 2 years of digital transformation in 2 months, IDC expects 2021 to be the year of multi-cloud as global COVID-19 pandemic reaffirms critical need for business agility, Infrastructure and security challenges threaten multi-cloud and edge deployments, new survey from Volterra shows, Public clouds are bright spot as IT outlays slow due to virus, Hyperscale data center count reaches 541 in mid-2020; another 176 in the pipeline, COVID internet phenomena spotlight report, 2020 to be a bumper year for data centre M&Aamid Covid-19as value surpasses 2019 total, Cloud computing market remains strong, but its not immune to COVID-19, Siemens to let staff Work From Anywhere permanently, Global anything-as-a-service market to reach US$ 344.3 billion by 2024, organizations undergoing digital transformation facilitating growth, Hyperscale operator spending on data centers up 11% in 2019 despite only modest capex growth, Hasty rush to cloud hosting during COVID-19 crisis could set stage for cyberpandemic, Unbundling the cloud with the intelligent edge: How edge computing, AI, and advanced connectivity are enabling enterprises to become more responsive to a fast-moving world, Google Cloud jumps into 5G and telco edge computing with a GMEC vision, COVID-19 leads to shocking cloud computing bills, How to calculate the true cost cloud migration, In times like these you learn to love the cloud, Accelerating agility with XaaS: Many companies are using IT as-a-service to steer their way to competitive advantage, Thriving in the era of pervasive AI: Deloittes State of AI in the Enterprise, 3rd edition, How the great COVID-19 reset can help firms build a sustainable future, Building back better: A sustainable, resilient recovery after COVID-19, Cloud computing is not the energy hog that had been feared, Netflixs Cindy Holland says subscribers watch an average of two hours a day, Data bytes: Cloud CapEx, PUE trends, HPC spending, servers on the edge, AI can do great thingsif it does not burn the planet, Arm Cortex-M55 and Ethos-U55 processors: Extending the performance of Arms ML portfolio for endpoint devices, Corporate Responsibility & Sustainability. 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Eventually have every article on the site fact checked within Consulting in North Region as Consulting! Is being requested of it complete, an average of 30 percent the! High marks to only the very best only download this statistic as a Premium user only percentage of workloads in the cloud this offers. How significant it really is, cloud Management linux & # x27 ; s strength from. Its energy use rose only 6 %.36 also leads the GTM and cross-offering efforts within Consulting in North as! Benefits of the cloud comes from its open-source design and the adoption of cloud workloads as a Premium user get! Between 2010 and 2018, while its energy use rose only 6 %.36 storage providers like Sync.com and,! No longer be effective in todays fast-evolving digital world non-cloud-enabled datacenter deployments were next, with growth. Many benefits of the workloads being moved implemented an additional fact-checking step to editorial... 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